Credit

______ is a contractual agreement whereby a borrower receives something of monetary value now and agrees to repay the lender at a later date.

• Credit Score

• Credit

• Money

• Investments

Credit addresses what?

• The concepts of utilizing credit and managing budget

• The concepts of budgeting and managing money

• The concepts of managing money and obtaining credit

• The concepts of obtaining and utilizing credit wisely

True or False: Good credit can take years to establish yet only months to destroy.

• True

• False

What is the FCRA?

• The Fair Credit Reporting Act

• The Fair Credit Reporting Association

• The Farm Credit Reporting Act

• The Farm Credit Respectable Association

Why is the FCRA is important?

A ______ is a loan where the interest rate will remain constant for the entire term of the loan period.

• Installment loan

• Adjustable rate loan

• Fixed rate loan

• Secured credit

An __________, also known as a variable rate loan, is a loan where the interest rate will change during the term of the loan period according to a specific benchmark.

• Installment loan

• Adjustable rate loan

• Fixed rate loan

• Secured credit

_________ are agreements by creditors to lend a specific amount of money which can be accessed by the borrower at any time.

• Installment loan

• Revolving lines of credit

• Fixed rate loan

• Secured credit

___________ are loans in which a specific amount of money is borrowed for a defined purpose and with defined repayment terms.

• Unsecured credit

• Revolving lines of credit

• Secured credit

• Installment loan

___________ means there is no collateral backing the money that has been lent by the creditor.

• Secured credit

• Revolving lines of credit

• Unsecured credit

• Installment loan